Insurance Update
Anthem-Cigna Health Insurance Merger is Rejected by Federal Judge

February 2017

Last year, CAMFT sent letters to the California Insurance Commissioner and the Department of Managed Health Care expressing our concerns about the potential merger of involving Anthem Blue Cross and Cigna Corporation. CAMFT raised concerns regarding the potential for a decrease in patients’ choice for the selection of health care insurance coverage in the marketplace; less competition in the health care market due to an increase of power to a monopolistic insurance company; and an increase of health insurance premiums for patients. Recently, a federal judge has rejected Anthem’s bid to buy rival health insurer, Cigna Corp. citing the potential for diminished competition and likely higher costs. The U.S. District Judge hearing the matter stated that the merger would significantly reduce competition in the already concentrated insurance market. Anthem argued that the merged company could save money for customers by combining the two insurers' different approaches to cost saving. An Aetna spokesman has said the company is strongly considering an appeal. CAMFT will keep members apprised of any developments.